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Table 8-B
a Monopoly Producer of Canned Iced Coffee Produces

Question 148

Multiple Choice

Table 8-B
A monopoly producer of canned iced coffee produces with the following costs:
 Cans of iced coffee: 1234567 Total Cast: (in dollars)  47912162435\begin{array} { c l l l l l l l } \text { Cans of iced coffee: } & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\\text { Total Cast: (in dollars) } & 4 & 7 & 9 & 12 & 16 & 24 & 35\end{array} Consumers demand iced coffee according to the following demand schedule:
 Cans demanded: 1234567 Price per can: 6.256.005.755.505.255.004.75\begin{array}{llllllll}\text { Cans demanded: } & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\\text { Price per can: } & 6.25 & 6.00 & 5.75 & 5.50 & 5.25 & 5.00 & 4.75\end{array}
-Refer to Table 8-B.At the profit-maximizing level of output, the firm's profits equal:


A) $2.35.
B) $5.
C) $8.25.
D) $10.
E) $10.25.

Correct Answer:

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